Platinum Weekly: Ignore The Fundamentals In The Near Term

|
About: GraniteShares Platinum Trust (PLTM), PPLT
by: Orchid Research
This article is exclusive for subscribers.
Summary

The marked appreciation in platinum prices so far this year (+16%) has prompted investors to question the sustainability of the rally.

This concern is legitimate considering that the rally has been mainly driven by substantial monetary demand in a context of weak fundamentals in the automotive sector.

In the current trading regime, however, we find that platinum is more driven by the macro than the micro.

Given our positive macro outlook for the precious metals space, we believe that platinum will move higher in the months ahead.

We expect platinum, PPLT, and PLTM to retest their respective 2019 highs by year-end.

Thesis

Welcome to Orchid's Platinum Weekly report, in which we discuss platinum prices through the lenses of the GraniteShares Platinum Trust (NYSEARCA:PLTM) and the Aberdeen Standard Physical Platinum Shares ETF (NYSEARCA:PPLT)